Bonds News

Puerto Rico golf club in $26.4 mln bond default -filing

Sept 4 (Reuters) - Puerto Rico’s Coco Beach Golf & Country Club has tapped a debt reserve fund for $122,235 that has not been repaid and is in default on $26.4 million of revenue bonds sold by the Caribbean island’s tourism authority, according to a disclosure.

The bonds, which have been repeatedly in technical default since 2011, were issued to fund two 18-hole golf courses and other facilities in Rio Grande, Puerto Rico, under the Trump International Golf Club name.

The latest filing with the Municipal Securities Rulemaking Board said the resort had made an unscheduled draw from the reserve fund on Aug. 16 “reflecting financial difficulties.”

“The borrower has not reimbursed (the Puerto Rico Tourism Development Fund) for such amount, which constituted an event of default,” Coco Beach’s Executive Vice President Jorge Diaz said in the filing.

Neither Diaz nor other finance officials were immediately available to describe the unspecified financial difficulties or to comment.

The revenue bonds were issued in 2011 by the development fund on behalf of the Trump International Golf Club Puerto Rico Project, the MSRB filing said. The filing said the next payment to bondholders was due on Nov. 30.